Mistakes to avoid as a beginner entrepreneur

Today, I am pleased to share with you a new article that could help you avoid common traps when starting a business as an auto-entrepreneur, SME or VSE. The entrepreneurial journey is full of difficulties, and knowing the mistakes to avoid is essential to increase your chances of success and ensure the sustainability of your business.

In this article, I will present you with some common mistakes made by entrepreneurs and give you practical advice on how to avoid them. Whether you are about to start your business, or you are already in business, these tips are for you. So, take a moment to get comfortable and let's discover together the mistakes to avoid as an auto-entrepreneur, SME or VSE.

Understanding the different available statuses

Before creating your company, it is essential to find out about the different existing legal statuses. Each status has its own advantages and disadvantages. Choose the right status for your business is therefore essential to ensure its proper functioning and sustainability.

Take the time to learn about the legal statutes available, such as auto-entrepreneur, SJSC, LLC, ILLC, etc.

Consider the advantages and disadvantages of each status

Once you have a good understanding of the different legal statuses, it is important to weigh the advantages and disadvantages of each. Consider the tax, social, liability and flexibility aspects offered by each status.

For example, the auto-entrepreneur status offers great administrative and fiscal simplicity, but it may not be suitable for a business with significant investments or a high turnover.

Indeed, the auto-entrepreneur regime is limited in terms of annual turnover. For the year 2021, the ceiling is set at 72,600 euros for the sale of goods and the provision of accommodation and 176,200 euros for the provision of services and the liberal professions. Beyond these thresholds, the auto-entrepreneur must switch to the real tax system.

It is therefore advisable to evaluate your potential turnover before choosing this status. Moreover, note that the auto-entrepreneur system does not allow you to deduct the real costs of your activity, but offers a flat rate deduction depending on your activity. It is therefore important to understand the tax implications of this system before you start.

Choose the status adapted to your activity and situation

Finally, choose the legal status that best suits your business and your personal situation. Do not hesitate to consult a certified accountant or a lawyer specialized in business law to help you make the most appropriate decision. Creating a business plan will also help you decide on the legal status of your company. The wrong choice of legal status can lead to administrative, tax or legal complications in the long run.

For more information on the different legal statuses and to find a chartered accountant or a lawyer specialized in business law, you can consult the website of Captain Contrat. 

Building an effective prospecting strategy

Prospecting is a crucial for the growth and the success of your business. To attract new customers, it is important to implement an effective prospecting strategy adapted to your market. This can include:

• identifying your target audience,
• defining your prospecting objectives,
• selecting the appropriate communication channels
• and creating a powerful sales pitch.

Use the right tools to prospect

Prospecting requires the use of appropriate tools to maximize your chances of success. Whether you choose:

• phone calls,
• email prospecting,
• social networks
• or professional events,

make sure you master the corresponding tools to optimize your results.

There are also specific software and applications to facilitate your prospecting management and the follow-up of your contacts.

Be regular and persistent when prospecting

Prospecting is a process that requires regularity and perseverance. Do not get discouraged if you do not see immediate results.

• Keep prospecting on a regular basis,
• adjust your strategy if necessary
• and learn from your mistakes to improve your success rate.

Persistence is the key to finding new customers and growing your business.

Provide quality customer service

Customer service is an essential element for building customer loyalty and ensuring the sustainability of your business. A satisfied customer is more likely to come back to you for future purchases and to recommend your company to others.

So take the time to set up a responsive, attentive and efficient customer service department to meet your customers' needs and expectations.

Manage complaints and returns effectively

Complaints and returns are an integral part of any business activity. It is important to manage them effectively to avoid losing customers and damaging your reputation.

• Set up clear procedures for handling complaints and returns
• and make sure you communicate this information to your customers.
• Treat every complaint seriously and with empathy
• and treat every return as an opportunity to improve your offering.

Retain customers to ensure business growth

Customer loyalty is an important growth lever for your company.

• Set up loyalty programs,
• offer exclusive advantages to your regular customers
• and don't hesitate to request their opinions and suggestions.

Offering subscriptions is a great way to build customer loyalty A loyal customer will contribute to the growth of your business and help you conquer new markets.

PayFacile can help you to set up and manage your subscription business. This tool allows you to:

• easily manage recurring payments,
• automate your billing
• and customize your payment pages.

In short, an essential tool for entrepreneurs who wish to develop their business and build customer loyalty.

Identify the skills you need to succeed in your business

Skills development is critical to ensure your business success. Identify the key skills you need to run your business, whether they are technical, management or communication skills. This identification will allow you to better target your training and personal development efforts.

Train and develop your skills

Invest time and resources in training and skills development.

Participate in professional training, workshops, conferences or webinars to enrich your knowledge and improve your skills.

Also, consider surrounding yourself with competent and complementary people to strengthen your team and maximize your chances of success.

Encourage continuous training for employees

If you have employees, don't forget to encourage them to train and develop their skills. Offer internal or external training that is tailored to their position and needs. Continuous training contributes to employee motivation and involvement and helps improve company performance.

Creating an effective online presence

In our digital era, it's crucial for auto-entrepreneurs, small businesses and SMBs to have a solid online presence. This includes:

• create a professional website,
• establish a search engine optimization (SEO) strategy
• and eventually launch online advertising campaigns (SEA).

Also consider:

• adapting your website to mobile devices
• and working on the user experience

to keep your visitors' attention and encourage them to take action.

Use social networks to promote your business

Social networks have become essential tools for entrepreneurs. They allow you to reach a large audience, create an engaged community and share your expertise.

• Choose the most relevant platforms for your business
• and develop a content strategy adapted to each of them.
• Don't forget to respond to comments and messages from your followers to encourage interaction and engagement.

Set up a content strategy adapted to your target

Content is king in digital marketing. Define a content strategy adapted to your target, taking into account their needs, expectations and preferences.

Create quality and varied content, including blog posts, videos, infographics, podcasts or case studies. Content should be informative, engaging and useful to your audience.

Have action plans to deal with difficult times

Downturns are inevitable for most businesses. It is important to anticipate these times and put action plans in place to deal with them.

Identify:

• the potential causes of downturns,
• assess the impact on your business
• and define strategies to mitigate these effects.

This may include:

• intensive prospecting,
• special promotions
• or partnerships with other companies.

Adapt and respond to market changes

The market is constantly changing and it is crucial for entrepreneurs to be able to adapt to these changes.

• Stay on top of trends in your industry,
• analyze your customers' behaviors
• and monitor the competition.
• Be prepared to adjust your offering, strategy or organization to meet new market demands.

Prepare the company for periods of growth

Growth periods should also be anticipated in order to ensure the sustainability of your business. Prepare your structure to manage an increase in demand by :

• recruiting additional personnel,
• investing in new equipment
• or optimizing your internal processes.

Good preparation will allow you to make the most of growth opportunities and accelerate your company's development.

We've reviewed several common mistakes that entrepreneurs must avoid to ensure the success of their business. By being aware of these pitfalls and following our advice, you'll increase your chances of success and help your business grow and last.

Learn from your mistakes and persevere in your entrepreneurial project

Finally, remember that entrepreneurship is a journey full of pitfalls and mistakes. The important thing is to:

• learn from these mistakes,
• adjust your strategy
• and persevere in your project.

Don't forget to seek advice and help from professionals, mentors or peers to continue to progress and develop your business.

Stay curious and open to new opportunities

The world of entrepreneurship is constantly changing. Staying curious and open to new opportunities will allow you to identify paths of growth and innovation for your business.

Attend events, conferences or trainings to stay informed about the latest trends and best practices in your industry. This will help you anticipate changes and adapt accordingly to ensure the success of your business.

In conclusion, avoiding these mistakes and taking a proactive and thoughtful approach will help you successfully navigate the world of entrepreneurship. Remember, there is no magic bullet for success as an entrepreneur, but by being aware of the potential pitfalls and adopting the right practices, you will be well prepared to meet the challenges and grow your business. So, launch yourself with confidence and good luck in this exciting entrepreneurial adventure!